National Friendly has revealed July 2024 was a record sales month for its Accident Only Income Protection, launched in April 2021. Sales in July 2024 are 23% up on its previous record month in June 2024, following product enhancements made in June. This continues an upward trajectory since launch as an alternative to full Income Protection, which the society also offers through advisers.
Today, National Friendly shares the claims data from January to June 2024. The data shows:
- Falls (13%), sports injuries (11%) and car accidents (8%) are the most common claim reasons. Hazardous pursuits make up 6% of claims, with football (36%) and rugby (28%) the main reasons. Working with horses, stock car racing, bike riding, skateboarding, hockey and jet skiing all feature under hazardous pursuit claims too.
- The average length of claim across all valid Accident Only Income Protection claims is 4.2 months.
- 97% of claim decisions are made within three working days.
- The virtual GP service, Friendly GP, has been used for 577 appointments from January to June 2024, with 100% of users rating the overall experience they received as excellent, very good or good. The most common reasons for referrals are MSK/Orthopaedic (58%), Dermatology (9%) and Cardiology (7%).*
- Accident Only Income Protection is primarily bought by men, who make up 70% of all policyholders.
From September 2024, National Friendly is delivering more product enhancements in its pursuit of expansion by launching level premiums for Accident Only Income Protection, reviewable every five years. Premium led quotes are also now obtainable.
Harris Khan, Director at Life Without Lemons, said, “National Friendly is constantly updating its products to better meet the needs of our clients. By offering affordable, easy-to-apply accident-only protection, we’re helping people who don’t have coverage get the protection they need within their budget. Since accidents are a big reason people can’t work, this kind of income protection is really valuable. The addition of premium-based quotes and level cover options is a great improvement that should make it easier to share and use the product.”
Accident Only Income Protection covers people financially if they are medically certified as unable to carry out the main duties of their occupation due to an accident and therefore suffer a loss of earnings. Depending on their selection of benefits on taking out the policy, customers can choose a benefit of up to £6,000 a month.
Graham Singleton, CEO of National Friendly, said, “Accident Only Income Protection offers a solution to a huge, underserved part of the population, who may have found Income Protection difficult to obtain due to health reasons or affordability. As there are no health questions or medical underwriting on the plan, it is an incredibly quick and simple application and offers cover without the need of any medical evidence."
“We’re big believers in full Income Protection, but we also recognise that not everyone can afford it. As cost of living pressures persist for over 55% of households (May 2024 ONS stats), Accident Only Income Protection gives advisers an option that helps clients manage their money more effectively without hurting their disposable income.”
Accident Only Income Protection offers the following benefits:
Core benefits:
- A benefit amount of between £500 and £6,000 per month.
- A benefit guarantee of £3,000 per month to protect against a fall in earnings (subject to proof of earnings).
- A payout ratio of 70% of your client’s gross income.
- £1,500 rehabilitation benefit to help your client get back to their usual self sooner.
- No medical underwriting.
- A flexible policy end date, at any birthday between ages 50 and 70.
- An option for increased cover each year, to take account of inflation and increases in earnings. Payments will increase to reflect the higher cover.
- Waiver of payments, so your client won't pay premiums whilst they’re receiving income benefit.
- A choice of when your client wants the benefit to start from after their accident – 30, 60, 90, 180 or 365 days.
- An option to change cover for certain benefits at a later date if needs change.
Additional options:
- Fracture cover.
- Flexible hazardous pursuits benefit – allowing clients to live life to the max and select the level of cover that meets their needs (subject to maximum premiums).
- Accidental death benefit – giving peace of mind.
